Most lenders offer a unified rate for their payment protection cover, so whether 25 or 55, consumers pay the same premium.
With bestinsurance.co.uk the price is dependent on age and the younger the applicant, the cheaper the premium. For example, consumers aged between 18 and 25, opting for unemployment or incapacity cover only, will pay 95p per £100 of monthly benefit.
A 25 year-old opting for both unemployment and incapacity cover will pay £1.60 per £100 of monthly benefit – some 25 per cent of the average price charged by the top 10 lenders.
A consumer spending £600 a month on mortgage repayments, over a 25 year term, could save a whopping £8,535 in MPPI premiums, says bestinsurance.co.uk.
Andrew Hagger, from independent financial website, Moneyfacts, said: “People need to be made aware that there are alternative providers offering superior levels of cover at a much reduced cost. This can result in thousands of pounds being saved over the term of a mortgage.”
